With these funds, the representatives of Moldovan SMEs will have access to loans on much more favorable terms than usual and will be able to invest them in expanding production and creating new jobs,” the EIB said in a press release.
The EIB Group (European Investment Bank and European Investment Fund EIF) signed agreements on September 26 on providing guarantees with commercial banks ProCredit Bank S.A. and Victoriabank S.A.. The financing provided to them was secured thanks to EU support under the EU4Business Guarantee Facility program.
Guarantees reduce financing costs and make it easier to obtain loans by reducing the collateral requirements – assets or property – that companies usually have to provide as security for a loan. By removing this burden, the initiative allows businesses to invest with confidence, expand their operations and create new jobs.
“SMEs make up 99% of all businesses in the EU and play a key role in the EU economy,” said Iwona Piorko, Head of the EU Delegation to Moldova. – In Moldova, SMEs are the main driver of innovation, job creation, economic growth and prosperity. The new local funding provided through the EU4Business Guarantee Program will allow Moldovan SMEs to benefit from the unprecedented opportunities offered by the EU accession process and access to the Union’s single market”.
